The Enforcement Committee of the Financial Services Board recently took action in response to a referral of Nestlife Assurance Corporation Limited for contravening section 7(3) of the Financial Advisory and Intermediary Services Act, No 37 of 2002.
“The allegation against Nestlife was that during the period of December 2013 to March 2014 Nestlife conducted financial services business with an unregistered entity (a funeral parlour) in that Nestlife would underwrite funeral policies of the clients of the funeral scheme.”
“The contravention was as a result of Nestlife’s attempt to assist a funeral parlour to regularise their business. The Registrar took into account, amongst other aggravating circumstances, that Nestlife is a repeat offender.” Nestlife received an order against it in June 2011 for a similar contravention.”
“The parties agreed to a penalty of R100 000. The parties also agreed that Nestlife would pay the costs incurred by the Registrar in referring the matter to the Enforcement Committee.”